Copper Prices Surge to Multi-Week High Amid Dollar Weakness

Copper prices in London reached their highest level in over two weeks on Tuesday, buoyed by a significant decline in the U.S. dollar. This drop in the dollar’s value followed increased criticism of the Federal Reserve chairman by President Donald Trump, which impacted investor trust in the U.S. economy.

The benchmark three-month copper contract on the London Metal Exchange (LME) experienced a rise of 1.2%, reaching $9,302.5 per metric ton as of 0350 GMT. Earlier in the session, it briefly touched $9,319.5 per metric ton, marking its highest point since April 4.

Trading on the LME had resumed following a hiatus for Easter on Friday and Monday. On the Shanghai Futures Exchange (SHFE), the most actively traded copper contract increased by 0.6% to 76,920 yuan ($10,525) per metric ton.

The U.S. dollar weakened, nearing its lowest point in a decade against the Swiss franc and hovering close to a 3-1/2-year low against the euro. A weaker dollar typically reduces the cost of commodities priced in U.S. currency for international buyers.

President Trump escalated his criticism of Federal Reserve Chairman Jerome Powell on Monday, referring to him as a “major loser” in a Truth Social post. He insisted that Powell lower interest rates immediately to avoid an economic downturn.

Kyle Rodda, a senior financial market analyst at Capital.com, commented, “The crisis of confidence in U.S. markets is intensifying as Trump’s policies disrupt, and potentially destabilize, the global economic order.”

In terms of other metals trading on the LME:

  • Aluminum increased by 0.89% to $2,386.5 per ton.
  • Lead saw a rise of 0.75% to $1,936.5.
  • Tin was up by 1.4% at $31,080.
  • Zinc increased by 0.8% to $2,598.
  • Nickel rose by 0.5% to $15,695 per ton.

On the SHFE:

  • Aluminum decreased by 0.4% to 19,695 yuan per ton.
  • Zinc fell by 0.4% to 22,130 yuan.
  • Lead experienced a decrease of 0.3% to 16,890 yuan.
  • Nickel saw an increase of 0.3% at 125,850 yuan.
  • Tin declined by 0.78% to 257,300 yuan.